Tag Archives: homeowners

Home Equity

Homeowners are tapping into equity

Because of the rising home prices, homeowners are cashing into their home equity.

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS.

The Size Home Owners Want

Current statistics of today’s homeowners

Current homeowners desire a different size home from those of different generations or various incomes.

Goldilocks mindset - real estate infographic CALIFORNIA ASSOCIATION OF REALTORS

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS.

Money Monday: Financial realities of owning a home

Let’s consider some of the financial realities about owning a home.

homeIn an opinion piece in the Fresno Bee newspaper, the writer made the case for why Congress should keep a tax incentive to encourage Americans to be homeowners. Regardless of your opinion on the matter, the author’s points on the financial positives of homeownership were beneficial and worth a read.

  • “Owning a home is one of the best ways to build long-term wealth, providing both equity accumulation and tax benefits over time. In 2013, the median net worth of homeowner families was $195,400, while the median net worth of renters was $5,400, according to the Federal Reserve.”
  • “Homeownership strengthens communities, encourages higher civic participation, boosts children’s educational performance, lowers crime rates, and improves health-care outcomes. Moreover, homeowners bring more stability to neighborhoods because they tend to move less often.”
  • “Homeownership helps provide predictability. Individuals can enjoy steady and consistent housing costs thanks to the tax incentive that allows them to own a home. That’s because a fixed-rate mortgage payment might not change for 15 to 39 years, while rents typically increase 2 to 3 percent a year.”
  • Read more of this article here: “Want to create wealth? This is one way to do it.”

Money Monday: Homeowners are twice as house rich as five years ago

After hitting bottom in 2012, home prices took off dramatically before leveling off a bit in mid-2014. In the last two months, though, they turned higher again. The amount of equity homeowners now have — the value outside their mortgage debt — has doubled in the last five years, according to CoreLogic.

money houseSeptember home prices showed a 6.3 percent annual gain, slightly more than in August and a clear sign that prices are heating up again after cooling through much of spring and summer. CoreLogic’s chief economist said that home equity wealth has doubled during the last five years to $13 trillion, large because of the recovery in home prices.

While homeowners today show more wealth on paper, they are not extracting it at nearly the rate they did during the last housing boom. Near-record-low mortgage rates have certainly prompted thousands of borrowers to refinance and lower their monthly payments, but a very small share have extracted cash in these refinances and home equity lines of credit (HELOC).

Full story: www.cnbc.com/2016/11/01/homeowners-twice-as-house-rich-as-five-years-ago

Money Monday: Time to Refinance Your Mortgage?

Time to Think About Refinancing Your Mortgage?

Source: NY Times

refinancing your homeDue to shifts in global bond markets, the average interest rate on a 30-year fixed-rate mortgage was 3.49 percent Monday, which is down from 4.2 percent a year ago and 3.9 percent at the start of 2016. As a result, now may a good time to check the rate on your home mortgage, because borrowers could save money by refinancing. For that, American homeowners can thank British voters, central banks in Europe and Japan, and a global economy that just can’t get out of first gear. Furthermore, mortgage rates could fall further in the weeks ahead as banks start to pass more of the savings from low rates in the bond market through to customers.

Read the full story here.

Money Monday: Renters’ Dilemma

It can be tough to go from the role of renter to owner.

With good reason, for many. According to the CALIFORNIA ASSOCIATION OF REALTORS, 46% of consumers are renting because they can’t buy. And 62% of renters have debt that makes buying a home difficult; because of: student loans, auto loans and credit cards.

But homeownership is still highly valued. Renters, on average, rate the value of being a homeowner at 6.8 stars out of 10.

TheRentersDilemma_lo

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS: http://www.car.org/aboutus/onecoolthing/renters/

Money Monday: Falling homeownership rates

Falling homeownership rates for more than just millennials

home buyer regretsLast year, 36.3% of households were in rentals, leaving the homeownership rate at 63.6% (10 years ago it was at 69%) (Shreya Agarwal, Forbes. http://www.forbes.com/sites/shreyaagarwal/2016/05/06/homeownership-rates-are-falling-and-its-not-just-a-millennial-problem/?ss=personalfinance#193b367ba9e0).

But according to Forbes, it’s not millennials that are the leading age range in this data; it’s 35- to 44-year-olds.

Read Forbes’ full article on this real estate data here: “Homeownership Rates Are Falling and It’s Not Just a Millennial Problem”.

What Boomers Want in Real Estate

Two-thirds of homeowners are over 55

That means that they have a large impact on housing for all generations.

WhatBoomersWantThis infographic is from CAR.org.